China to catch up U.S. as world`s largest oil importer - OPEC

China could overtake the U.S. as the world`s largest oil importer by 2014, the Organization of the Petroleum Exporting Countries said, the latest evidence of how the American shale boom is reshaping global energy markets.

"With the shale boom in the (U.S.) threatening to drastically reduce America`s oil-import needs, China is expected to take its place in the number one spot," OPEC said in a report posted on its website this week.

OPEC, whose members supply more than one in three barrels of crude consumed worldwide, said rising Chinese imports were backed by increased throughput at the country`s refineries.
The group quoted analysis saying China`s oil imports could top 6 million barrels a day this year, while the Washington-based Energy Information Administration, or EIA, foresees net U.S. oil imports could fall below that level in 2014.

In a landmark report in November, the International Energy Agency, which advises developed oil-consuming nations, predicted the U.S. would become the largest global oil producer by 2020 while North America could turn into a net oil exporter 10 years later.

The shifting demand picture, however, is hurting some OPEC producers more than others.
Nigeria`s oil exports to its largest customer, the U.S., have fallen to their lowest levels in decades due to rising American production, according to EIA data.

Analysts say China is unlikely to take up more of Nigeria`s high-quality barrels unless the West African producer cuts its prices. By contrast, Persian Gulf producers have already started redirecting some of their shipments to the Asian nation, because its refineries tend to be more suited for their cheaper crude of lesser quality.

For the time being, however, analysts say the newly found abundance of U.S. crude may not cushion markets from a new oil-price spike. Higher American output is partly offset by declines with other producers while lingering tensions in the Middle East—such as a standoff over Iran`s nuclear program—could still push prices up, U.K. broker Barclays BARC.LN +0.99% said in a note Wednesday.


/AzerTAc/